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Personal Income Tax

Personal Income Tax (PIT) is a direct tax levied on the income of a person. A person means an individual, an ordinary partnership, a non-juristic body of person(s), or an undivided estate. In general, a person liable to PIT has to compute his or her tax liability, file a tax return, and pay tax, if any, on a calendar year basis.

1. Taxable Person

Taxpayers are classified into “resident” and “non-resident” categories. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand, as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand. 

2. Taxbase

2.1 ASSESSABLE INCOME

Income chargeable to the PIT is called “assessable income”. The term covers income both in cash and in kind. Therefore, any benefits provided by an employer or other persons, such as a rent-free house or the amount of tax paid by the employer on behalf of the employee, is also treated as assessable income of the employee for the purpose of PIT. Assessable income is divided into 8 categories as follows:

  1. Income from personal services rendered to employers;
  2. Income by virtue of jobs, positions or services rendered;
  3. Income from goodwill, copyright, franchise, other rights, or annuity; or income in the nature of yearly payments derived from a will or any other juristic Act or judgment of the Court;
  4. Income in the nature of dividends; interest on deposits with banks in Thailand; shares of profits or other benefits from a juristic company, juristic partnership, or mutual fund; payments received as a result of the reduction of capital, a bonus, or an increased capital holdings; gains from amalgamation, acquisition or dissolution of juristic companies or partnerships; and gains from transferring of shares or partnership holdings;
  5. Income from letting of property and from breaches of contracts, installment sales or hire-purchase contracts;
  6. Income from liberal professions;
  7. Income from construction and other contracts of work;

Income from business, commerce, agriculture, industry, transport or any other activity not specified earlier. 

2.2 DEDUCTIONS AND ALLOWANCES


            Certain deductions and allowances are allowed in the calculation of the taxable income. Taxpayer shall make deductions from assessable income before the allowances are granted. Therefore, taxable income is calculated by:


             TAXABLE INCOME = Assessable Income - deductions - allowances

DEDUCTIONS ALLOWED FOR THE CALCULATION OF PIT

             TAXABLE INCOME = Assessable Income - deductions - allowances

DEDUCTIONS ALLOWED FOR THE CALCULATION OF PIT

Type of Income

Deduction

a. Income from employment

40% but not exceeding 60,000 baht

b. Income received from copyright

40% but not exceeding 60,000 baht

c. Income from letting out of property on hire

 

            1) Buildings and wharves

30%

            2) Agricultural land

20%

            3) All other types of land

15%

            4) Vehicles

30

            5) Any other type of property

10%

d. Income from liberal professions

30% except for the medical profession where 60% is allowed

e. Income derived from contract of work whereby the contractor provides essential materials besides tools

actual expense or 70%

f. Income derived from business, commerce, agriculture, industry, transport, or any other activities not specified in a. to e.

actual expense or 65% - 85%, depending on the types of income

ALLOWANCES (EXEMPTIONS) ALLOWED FOR THE CALCULATION OF PIT

Types of Allowances

Amount

Personal allowance

 

            Single taxpayer

30,000 baht for the taxpayer

            Undivided estate

30,000 baht for the taxpayer’s spouse

            Non-juristic partnership or body of persons

30,000 baht for each partner but not exceeding 60,000 baht in total

Spouse allowance

30,000 baht

Child allowance (child under 25 years of age and studying at an educational institution, or a minor, or an adjusted incompetent or quasi-incompetent person)

15,000 baht each
(limited to three children)

Education (additional allowance for child studying in educational institution in Thailand)

2,000 baht each child

Parents allowance

30,000 baht for each of taxpayer’s and spouse’s parents if such parent is above 60 years old and earns less than 30,000 baht

Life insurance premium paid by taxpayer or spouse

Amount actually paid but not exceeding 100,000 baht each

Approved provident fund contributions paid by taxpayer or spouse

Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht

Long-term equity fund

Amount actually paid at the rate not more than 15% of wage, but not exceeding 500,000 baht

Home mortgage interest

Amount actually paid but not exceeding 100,000 baht

Social insurance contributions paid by taxpayer or spouse

Amount actually paid each

Charitable contributions

Amount actually donated but not exceeding 10% of the income after standard deductions and the above allowances

 

2.3 TAX CREDIT FOR DIVIDENDS

Any taxpayer who domiciles in Thailand and receives dividends from a juristic company or partnership incorporated in Thailand is entitled to a tax credit of 3/7 of the amount of dividends received. In computing assessable income, the taxpayer shall gross up his/her dividends by the amount of tax credit received. The amount of tax credit is creditable against the tax payer’s tax liability.

3. PROGRESSIVE TAX RATES

Personal income tax rates applicable to taxable income are as follows:

TAX RATES OF THE PERSONAL INCOME TAX

Taxable Income (BAHT) Tax Rate (%) TAX BAHT CumulativeTax (BAHT)

0-150,000

Exempt NIL NIL

more than 150,000 but less than 300,000

5 7,500 7,500

more than 300,000 but less than 500,000

10 20,000 27,500

more than 500,000 but less than 750,000

15 37,500 65,000

more than 750,000 but less than 1,000,000

20 50,000 115,000

more than 1,000,000 but less than 2,000,000

25 250,000 365,000

more than 2,000,000 but less than 4,000,000

30 600,000 965,000

Over 4,000,000

35